What makes a CDR offtake contract bankable? Why is the financing for Enhanced Weathering so different from Direct Air Capture or from Biochar? Do they have anything in common at all? How do Capex and Opex affect the optimal financing structure for CDR? Authored by finance experts with firsthand experience in the early CDR market, Carbonx is proud to present its first CDR Financing Report! This comprehensive study offers an in-depth analysis of the unique challenges and opportunities that define CDR financing, setting it apart from traditional climate finance.The report closely examines the critical factors shaping CDR financing, including financial instruments, bankability requirements, risk profiles per pathway, collaterals, and the impact of cost structures (Opex vs Capex) on financing feasibility. It highlights the limitations of current approaches and addresses potential risks that could affect the cost of capital, business strategies, and overall performance. We would like to thank Isabelle de Cointet for her leadership on this topic and extend our appreciation to Julien Jacob, Kash Burchett, Julie GOSALVEZ, and Bertrand Béghin for their meaningful contributions. Please find our report on the following link: https://lnkd.in/ehGYfSDA #CDRfinance #Fundinggap #Climatefinance #CarbonRemoval
Paolo Piffaretti
1mo
Thankful for the Carbonx Climate team and in particular Isabelle de Cointet for leading this initiative and delivering Carbonx’s first report on CDR FINANCING but more importantly a practical guide with actionable insights for CDRs and financiers. Heartfelt thanks to our contributors as well Julien Jacob Kash Burchett Julie GOSALVEZ Bertrand Béghin!
Matt Timmins
1mo
Wow what a terrific resource! Would you be ok with us featuring this on the Reearthers platform as we seek to build out the Collaborative Knowledge Hub for CDR Developers?
Link to the report: www.carbonx.world/bridging-the-cdr-finance-gap-guide